LIBOR to SOFR Transition Questions and Answers

The Mortgage Bankers Association recently interviewed MetLife Managing Director Reena Pally about the transition away from LIBOR to a successor index for floating-rate loans.

“With hundreds of trillions of dollars of global derivatives and cash products such as mortgages and syndicated loans tied to LIBOR, it’s important that investors understand the potential timing and implications of a transition from LIBOR to a replacement index,” Pally said. “This transition has the potential to impact the economics of all MBA members and their clients.”

Pally participated with the MBA LIBOR Outreach Committee, which she said brings together institutions from different pockets of the commercial mortgage market to share how each institution is handling the transition from LIBOR to a replacement index. “Through sharing best practices, we aim to make the transition smoother for each MBA member,” she said.

The full interview is available here. For more information on MBA’s LIBOR initiatives, contact Andrew Foster at